Total buys US$207 million stake in Tellurian to back Driftwood LNG

French energy giant Total has taken a 23 per cent stake in Houston-based Tellurian Investments, putting up US$207 million to develop the Louisiana-based Driftwood LNG project.

Total says it will take “approximately 23 per cent of Tellurian at US$5.85 per share” to develop an integrated gas project, from acquisition of US-based gas production to delivering cargoes from Driftwood LNG to customers overseas.

Driftwood LNG is a 26 million tonnes a year (mta) export venture. The project is in its engineering design and pre-filing phase, having secured approval from the Federal Energy Regulatory Commission (FERC) in June for its pre-filing request. Tellurian hopes to start construction in 2018 and to produce its first LNG in 2022.

Today’s announcement is vote of confidence in Tellurian founder Charif Souki, founder of Sabine Pass LNG developer Cheniere and in his bullish vision for US LNG-export growth. It also supports Total’s plan to double its liquefaction capacity to some 20 mta and its LNG-trading portfolio to 20 mta by 2020.

Total president gas, renewables and power Philippe Sauquet said: “We are happy to join forces with Tellurian, which has a very experienced team with a strong track record developing and managing LNG assets in the US.

“Investing in Tellurian at an early stage will give us the opportunity to strengthen our mid- and long-term LNG portfolio, thanks to a very cost-competitive project.”